Shulou(Shulou.com)11/24 Report--

August 17 (Xinhua)-- Intel announced on Wednesday local time that it would end its acquisition of Israeli semiconductor contract manufacturer Tower Semiconductor because it could not get the regulatory approval required by the merger agreement in time.

Under the terms of the merger agreement, Intel will pay a termination fee of $353 million to High Tower, offsetting the $232 million in revenue generated by Intel's contract Manufacturing Services (IFS) division in the second quarter of 2023.

Founded in 1993 and headquartered in Israel, Gaota Semiconductor is a purely independent professional contract factory dedicated to semiconductor manufacturing, mainly based on customer designs or other third-party designs.

Although Gaota Semiconductor is smaller than market leader TSMC, it has a wealth of experience and customers, which is an advantage for Intel.

On February 15, 2022, Intel announced that it would buy Gaota Semiconductor for $5.4 billion. Initially, the acquisition was expected to be completed within a year, but the deadline was extended twice.

When the acquisition was first announced, the deal was called a "highly complementary deal" and would play a key role in Intel's plans to become a major global supplier of contract manufacturing services and semiconductor manufacturing capabilities.

Like many mergers, the deal requires approval from a number of regulators around the world, including China. But in the end, the deal was terminated because of regulatory hurdles. It is understood that the proposed deal has been approved in all places except China. Shares of Gaota Semiconductor began to fall after the collapse of the deal with Intel.

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